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Incentive-Based Regulation (RIIO Model)—Great Britain

Incentive-Based Regulation (RIIO Model)—Great Britain

The Office of Gas and Electricity Markets (Ofgem) regulates the transmission and distribution networks for gas and electricity in Great Britain (England, Wales, and Scotland).

The price control regulation is referred to as RIIO and is similar in concept to the Incentive-Based Regulation (IBR) in Peninsular Malaysia.

The price control is applied through an output-driven model that covers primary outputs as required by stakeholders (customers, regulators, etc.) and secondary outputs, which enable the targets.

Network companies submit an 8-year business plan for meeting the primary output targets and also cover the secondary outputs, which enable the primary targets.

The RIIO price control also enables innovation fund development through a share from the revenue of the network companies.


  • Executive Summary
  • Great Britain (GB) vs. the United Kingdom (UK)
  • Ofgem-Great Britain's National Regulatory Authority
    • Office of Gas and Electricity Markets
    • Standing of Ofgem in Europe
    • Recent News from Ofgem
  • Great Britain's Electricity Market
    • Electricity Market Structure-Comparison
    • UK Generation Mix (2014)
    • Great Britain-Transmission Operators (TOs) and System Operator (SO)
    • Great Britain-Distribution Network Operators (DNOs)
  • RIIO
    • RIIO Model
    • RIIO Highlights
    • RIIO Stages
    • Outputs and Price Control Methodology-Principle (Electricity)
    • Outputs and Price Control Methodology-Primary Output
    • Cost Benefit vs. Price Control Periods
    • Outputs and Price Control Methodology-Revenue
    • RIIO-Innovation Framework
  • Implementation of RIIO Model
    • NGET-RIIO Timeline
    • Network Performance-Electricity Transmission Under RIIO
    • News Roundup
  • Case Reference-Network Operators
    • Network Operator Viewpoint-Reference from SSE
    • National Grid Electricity Transmission (NGET)-Primary Deliverable
    • NGET-Output Total Cost Share
    • NGET-Reliability and Availability
    • NGET-Innovation
  • Appendix
    • Retail (End Prices) for Households (2013)

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